I hate this idea:
Category: Bailouts, Credit, Legal, Real Estate, Video
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
I too dislike it. It tries to solve a side effect problem rather than the real underlying problem. First, in a free market the value of a house is zero plus any extra value coming from the bidding process on the house by those who want it most. The fix is to make primary homes non-free market by using government price supports. If my home was worth say $200k when the mortgage was issued, then that should be the minimum price forever. There would be required casualty and maintenance insurance. Expensive, not so much. Look at how the local tax base is protected by this as well as neighborhood property values. Pay for it? How about dropping some of the Fed income tax credit for mortgage interest now in effect?
Bring in more immigrants
… in other words the exact opposite, yet again, of what the right wing of Republican Party demands.
What is it you hate about this? I do not pretend to understand, but is it crazy enough, to work?
“What is it you hate about this?”
First of all, no bank would ever make mortgage loans in any city that does this.
The premise seems to be vaguely fascist. We know best and what we say goes. Nothing is moving here so here’s how we are going to do it. You can fight it but any spare cash you have will end up lining the lawyers pockets. The process if entered into with good faith as seems to be proposed might work but if it gets distorted will result in funds for lawyers and not much more. Have I got it right?
Just another scam from scam central. A scam du jour if you will.
I think the logic is that the mis-pricing of single family homes is causing severe problems in the market (people don’t want to buy houses, foreclosures are ruining entire neighborhoods, zombie banks are not dying). If someone could come in and wave a magic want to restore equilibrium prices, everyone (other than the people getting paychecks from the zombie banks) would be better off.
So, while this might not be a great idea and the actual execution is likely to create other unanticipated problems, the final result might not be so horrible.